More parents to get childcare funding as nurseries struggle with demand

The final phase of the largest-ever expansion of publicly funded childcare support has begun in England, as thousands of working parents receive more help with their nursery costs.

Those eligible are now able to access 30 hours of childcare per week during term-time, paid for by the government, for their children aged nine months to four years.

Prime Minister Sir Keir Starmer said it was a "landmark moment" for working families, and that the scheme would "put money back in working parents pockets".

But parents say they are facing long waiting lists for places, with nurseries warning that staff shortages are limiting their availability.

Parents Josh Harper and Chloe Hart say their 18-month-old son Oakleys name was the first one on the waiting list at his new nursery in Altrincham.

The £240-a-month saving on fees, which are falling from £1,130 to £889 because of the scheme extending from 15 hours to 30 hours of funded care, "just releases that little bit of stress", mum Chloe says.

"It is a significant saving and one that does really help us," dad Josh adds.

Both teachers, the couple were keen to secure a place, aware that demand has been rising.

The government had estimated that about 70,000 extra places would be needed by this September to accommodate that increase in demand.

The number of spaces is rising but availability varies across the country – and nurseries and childminders say inquiries for places have "gone through the roof" from families eligible for the extra funding.

"A few years ago, the percentage of families getting the funding was probably 20%, now Id say its nearly 95% of families," George Apel says as he shows me around the newly opened Altrincham Day Nursery, the Apel familys seventh nursery.

"Parents are having to be a lot more flexible with their acceptance of what days are available. Before, parents could try to match their childcare to their job, now theyre actually matching their job to their childcare availability."

For Rachael Darbyshire, who lives in Bolton, the search for a childcare place for her return to work next summer has proved challenging.

Although she started her search before six-week-old Gabriel was born, all of her local nurseries have waiting lists up until September 2026.

"It is a massive help and will bring our bill down from £1200 to around £800, but the biggest issue is that it is only great if you can actually get a childcare place," Rachael says.

"Its all well and good saying that there are these hours available, but if the childcare places are not there, then its not really supporting women in returning to work."

Some parents are going to extra lengths to make themselves eligible for the funded hours as early as possible.

Rachel Williams, from Warwick, says she was thinking about the scheme before the birth of her twins in 2022, when doctors told her she would need a Caesarean four weeks early.

She opted to have the procedure at the end of that March, rather than the beginning of April, so she wouldnt miss the deadline for being eligible for funded hours at the start of the April term.

"My friends all laughed at me, but it was a really conscious decision and its definitely saved us thousands and thousands of pounds," she says.

If the twins were born in April, they wouldnt have been eligible for funded hours until the September entry points.

"You shouldnt really have to be thinking about that," Rachel says.

Research from the National Foundation for Educational Research (NFER) suggests that workforce issues could be a key barrier to delivering the promised offer to parents, with low pay and limited progression opportunities a constant challenge for staff.

It is estimated the sector needs 35,000 more staff to provide the funded hours expansion, and the NFER says even if that figure is reached, there are likely to be regional discrepancies.

The government says the number of staff delivering funded childcare in nurseries rose to 272,500 this year - up by 18,200 from 2024, which it said was the highest increase on record.

It has been offering a £1,000 incentive for new recruits, or for people rejoining the workforce in some areas.

But Mr Apel says "retention is arguably more important than recruitment".

The nursery has started its own recruitment company because of the struggle to bring in and keep early years workers.

The number of childminders has also been continuing its long-term decline, with Ofsted figures showing the numbers falling by 1,000 in the last year.

There has also been confusion around what is "free" as part of the scheme, and what has to be paid for.

The government-funded hours cover term-time only, and providers say the funding rates, particularly for children aged three and four, are lower than the costs.

It means many nurseries are putting up their prices. A University of Bath study tracking fees over the past 18 months found that they have risen fastest in areas with the lowest government funding, which it says could deepen regional inequalities.

"Parents are phoning up, theyre looking for this thing thats been called free, and then they are met with additional charges, for meals or nappies," says Sarah Ronan, from the Early Education and Childcare Coalition, which represents childcare providers and charities.

"The sector has been tasked with rolling out the biggest expansion of childcare in history, and theyre doing it in a really constrained financial environment."

She says without extra funding, providers may reduce the number of hours they can offer and pause their recruitment plans, further limiting the availability of places.

Joeli Brearley, founder of the Pregnant The Screwed campaign group and the parent support programme Growth Spurt, says there is "a tussle between parents and providers" who are both struggling.

"For parents, its really complicated, its not really working," Ms Brearley says.

"We are hearing from parents who are moving their C-section day in order to fit in with the funding criteria, were hearing from women who say theyve gone to their midwife for a sweep to try and bring labour on faster, and people that are asking for inductions earlier just so they can fit with the funding criteria - and that is madness."

A survey by Growth Spurt and Women in Data suggests that many parents are paying extra consumable fees of £15 a day.

The government has issued guidance saying any additional costs need to be laid out clearly and are optional, but nurseries say charging for extras is the only way to make up the shortfall.

There is also concern about those being left out.

Parents who are ineligible for the entitlements pay £205 per week more for a child under two, according to Coram Family and Childcare.

The charity says a child with working parents eligible for the entitlements will receive three times as much government-funded early education than a disadvantaged child by the time they start school.

Education Secretary Bridget Phillipson said the scheme was designed to give children "the best start in life", and provide a "huge boost" to the economy.

"And this is just the beginning," she added.

"My vision for early years goes beyond this milestone. I want access to high-quality early years for every single family that needs it, without strings and without unfair charges.

"Over the next few years, that is my commitment to parents."